For its fourth quarter ending March 31, 2021, Bombay Dyeing and Manufacturing company posted a net loss of Rs 166.74 crore as against Rs 82.46 crore profit reported financial results for the period ended December 31, 2020.

The company reported total income of Rs 507.75 crore during the period ended March 31, 2021 as compared to Rs 396.13 crore during the period ended December 31, 2020.

The company reported EPS of Rs 8.07 for the period ended March 31, 2021 as compared to Rs (3.99) for the period ended December 31, 2020. On a yearly basis, the company reported total income of Rs 507.75 crore during the period ended March 31, 2021 as compared to Rs 317.30 crore during the period ended March 31, 2020.

Net loss was Rs 166.74 crore for the period ended March 31, 2021 as against net profit of Rs 48.57 crore for the period ended March 31, 2020. The company reported EPS of Rs 8.07 for the period ended March 31, 2021 as compared to Rs 2.35 for the period ended March 31, 2020.

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Confederation of All India Traders (CAIT) has urged Piyush Goyal, Minister of Industry and Commerce to act against foreign e-commerce companies allegedly flouting lockdown norms to deliver non-essential items and unfairly gaining market share at the cost of small merchants.

Praveen Khandelwal, General Secretary, CAIT, alleged that Amazon and Walmart-owned Flipkart have been making illegitimate financial gains by supplying non-essential items such as mobile phones, kitchen appliances, electronics and accessories during the lockdown.

He accused foreign e-commerce companies of delivering mobile phones as restrictions imposed by the state government do not allow physical stores to operate

He urge the Minister to prohibit these foreign e-commerce entities from gaining market share at the cost and life of small and medium kirana stores in India because Kirana stores have formed the backbone of the industry over the years.

Alok Textiles’ Q4 revenues increased by 97.86 per cent Y-o-Y to Rs 1,466.82 crore. Even for the full year FY21, the company reported 16.7 per cent growth in net sales at Rs3,847.59 crore. The sales picked up after a relatively lull period during the pandemic. In fact, the top line was also up 22.05 per cent on a sequential basis compared to Dec-20 quarter.

For the March-21 quarter, Alok reported a consolidated net loss of Rs-500.11cr as against a net profit of Rs1,790.87 crore in the March’20 quarter. However, both these numbers were predominantly influenced by exceptional items.

The company had booked an exceptional loss of Rs650.95 crore in the March’21 quarter, while it had booked an exceptional gain of Rs2,052.55 crore in the March’20 quarter. In the March’20 quarter, the exceptional gain came from the extinguishment of assigned debt as per the resolution plan.

In the March’21 quarter, the exceptional loss was on account of impairment of assets provided for. Due to these exceptional items, the margins were neither relevant, nor comparable.

As India races to contain a second wave of Corona virus, artisans employed by garment factories in Mumbai are facing a harsh new reality. With red-carpet dresses and cocktail outfit orders disappearing, orders from Western fashion houses were either reduced by 70 per cent or cancelled, says Max Modesti, Founder, Les Ateliers, 2M, a Mumbai-based embroidery firm. Luxury Houses Chanel, Hermes and Louis Vuttiion were the only brands that increased orders. This has led to jobs losses for around 140 million artisans since March 2020, estimates Mumbai-based Center for Monitoring Indian Economy. Left with no work and place to live, many artisans have returned to their native villages.

Suppliers go bankrupt as safety measures increase costs

According to Modesti, export houses and suppliers who tried to reopen their shops last year went bankrupt as the costs of virus-related safety measures increased their operational costs. Worst affected were the Utthan suppliers, that had made heavy investments on compliance requirements like sleep dormitories for workers in recent years. Rosey Hurst, Founder, Impact , the Mumbai-based consultancy firm that manages the Utthan notes, many brands stopped employing hand embroidery ateliers between March and July 2020 due to heavy order disruption.

During this period, Utthan signatories teamed up with Mumbai exporters to protect jobs and support payments of over 1,000 karigars informally employed by Utthan subcontractors.

Pandemic-led fears threaten survival

Though many of artisans are now being employed Indian bridal designers, pandemic-related fears are preventing them from stepping out of their homes for work. Most karigars are Muslim men, an increasingly socially marginalized section of the society. Their situation is likely to persist till 2022, threatening the survival of their art.

Like all other markets, the luxury fashion rental market too is bearing the brunt of recurrent COVID-induced lockdowns. As per Money Control, almost 80 per cent property owners in Indian high streets have witnessed 14 per cent decline in their rents. One of these prominent high streets is New Delhi’s Khan Market whose rents have fallen and thereby Khan Market’s position as one amongst the top 20 most expensive retail high street markets in APAC has dropped to rank 21, says a report by Cushman & Wakefield.

However, despite this, Khan Market continues to be the most expensive retail market in India with a rent of $195 per sq ft. The second position in this category is occupied by old retail hub Connaught Place which covets a rent of $153 per sq ft. The third most expensive market is the DLF Galleria in Gurgaon whose rent is $113 per sq ft.

Lockdowns lead to 9 per cent decline in rents

As per the Cushman & Wakefield report, recurrent lockdowns have led to an average 9 per cent decline in rents across India. This rents ranged between 18 per cent and 14 per cent in Kolkata and Bengaluru respectively while the decline was limited to less than 2 per cent in Chennai and Ahmedabad.

Rents for almost 60 per cent high streets in the Asia Pacific region declined in 2020. One of the worst impacted was Hong Kong’s premier shopping district Causeway Bay, whose rents declined 43 per cent to HK$870 per sq ft per month.

Anshul Jain, Managing Director India and South East Asia says, the APAC region already has the largest base of global e-commerce users. Hence, its shift to online shopping post pandemic is perfectly comprehensible. The pandemic has also led to rise of the localization trend as shoppers preferred to shop from local brands to help them survive through the pandemic.

Around 50 per cent of 8,000 consumers surveyed by Rakuten Advertising reported spending on local brands. They are also avoiding international online brands and spending their money on domestic markets.

Omnichannel retail to boost luxury purchases

The pandemic has also increased the share of online luxury purchases from 12 per cent in 2019 to 23 per cent in 2020, says analyst Bain & Company. Consumers can now enjoy an omni-channel retail experience while shopping for luxury goods. This is likely to boost their luxury purchases leading to a further evolution of the luxury fashion goods sector, says the report.

Though the recovery of high streets is likely to be slow, global roll out of vaccine programs and the gradual return of retailers to normalcy will accelerate the overall recovery of retail sector, says the report.

However, this would also split consumer spending between value added and luxury goods. The global luxury retail sector rebounded within a year after the 2008 global financial crisis. This time too, the quick recovery of Chinese luxury sector paints an optimistic picture for luxury retailers.

Sportswear brand Asics has roped in all-rounder Ravindra Jadeja as its new brand ambassador.

The company, which focuses on sporting gear for the running category, said that its partnership with Jadeja would further strengthen the company’s commitment, spread awareness about its diverse offerings, and magnify the reach of the brand during the ongoing Indian Premier League (IPL) season.

Known for his batting and wicket-taking abilities, Jadeja has picked up over 425 wickets and scored over 4,000 runs in the international cricket matches. He was first-lined in the Indian squad for the 2006 U/19 Cricket World Cup in Sri Lanka and was the vice-captain of the victorious Indian team at the 2008 U/19 Cricket World Cup.

A high performance brand, Asics has been working with young and fresh athletic talent across various genres of sports. In India, ASICS is promoted by actor Tiger Shroff.

The company was founded in 1949, by Kihachiro Onitsuka which sells running shoes as well as athletic and sports inspired footwear, apparel, and accessories. In Asia, Asics currently has over 55 stores across India, Sri Lanka and Bhutan.

Shirt brand Bombay Shirt Company has teamed up with textile brand Safomasi for a collaborative collection of bright shirts. The brand launched the line on its e-commerce store.

As per Fashion Network, the collection comprises three specially designed prints featuring whimsical imagery of crossed fingers, horseshoes, and lucky cats. The gender-neutral shirts have launched on Bombay Shirt Company’s dedicated e-commerce store priced at Rs 2,500 ($33.59).

Safomasi, a textile brand based between India and the UK, is known for its bright, cheerful prints and also creates a range of homeware including cushions. The collaborative collection mixes Bombay Shirt Company’s classic shirt tailoring with Safomasi’s bespoke textile design.

As Bombay Shirt Company is based in Mumbai, it has been forced to temporarily halt its operations due to the state-wide lockdown.

It’s common for small-scale Indian apparel retailers to shut shop due to delayed orders. The shutdown of non-essential services since last year has led to the closure of thousands of apparel enterprises and manufacturers have closed their operations due to lockdown of non-essential services. Transportation disruption strategies due to the surge is exhausting retailers efforts in meeting customer demand, says Brokerage firm Motilal Oswal in its new report.

The report states, after the first COVID-19 wave, retailers had managed to recover almost 82 per cent of pre-COVID sales by January-February 2021. However, the onset of second wave coerced retailers to shutter stores.

Lack of demand spells doom

Clothing Manufacturers Association of India (CMAI) attributes the downfall of smaller retailers to consumers’ shift to e-commerce websites. An interpretative study by AP Shemi also confirms, over 86 per cent Indians now prefer online shopping of clothes and accessories over the traditional methods. Lack of demand and antiquated trends have led to the regression of retailing industry in India with around 46 per cent customers now abandoning shopping at physical stores, informs a report by IT company Capgemini.

The Capgemini report states by Inventive, the COVID-19 pandemic has also altered consumers’ spending habits. They no longer seek deals in cash due to their of future job losses and have become more focused on conserving cash. However, the apparel industry failed to capture this market by mobilizing low capital and optimizing costly resources that weakened business for thousands of small retailers.

Financial insecurity blocking future growth

Growth prospects of smaller retailers were also hampered by the lack of financial security promised by the Central and state governments during the initial few months of the lockdown. It is important for the governments to provide these small-scale industries a chance to expand their resources. India cannot boost apparel exports unless it fulfills the striving needs of these small manufacturers.

The industry employs around 45 to 60 million people, and the second wave is proving to be a roadblock in their progress. An extension of lockdown could deteriorate their condition further.

Lenskart’s acquisition of essential delivery start-up DailyJoy will help it strengthen its operations and expand its footprint in the domestic and overseas market. Lenskart has also opened a technology centre in Hyderabad to provide employment in various teams across product, design and development, quality engineering, front end developers, java developers, android and IOS developers and data science engineers.

The company plans to strengthen its team by employing over 100 people across engineering, product and design verticals in the next six months. Satish Sharma, ex-CEO, DailyJoy says, the collaboration will help synchronize the company’s synergies with Lenskart and add value to their remarkable journey going forward in the ever-evolving eye-wear industry.

Founded in 2010, Lenskart is funded by Softbank, Kedaara Capital, TPG, IFC, Premji Invest, and other marquee investors. The start-up is described as a unicorn as its valuation has crossed $1 billion.

Due to the second COVID-19 wave in India, the spring IHGF Delhi Fair has been rescheduled as an entirely virtual event to ensure the safety of buyers and exhibitors. The physical aspect of the international trade fair has been cancelled, reports Home Textiles Today.

The virtual edition will run from May 19-23 at http://www.ihgfdelhifair.in. It will feature more than750 Indian manufacturers exhibiting products in 14 broad-based categories with a focus on merchandise that many buyers would find only in India.

The show will offer more than 2,000 products and over 200 trend-specific design developments encompassing the complete range of home furnishings.

Major product groups at IHGF Delhi Fair will include home textiles and furnishings, furniture and accessories, gifts and decoratives, houseware and home utility products, lamps and lighting, carpets, rugs and floor coverings, Christmas and festive décor, handmade paper and gift wraps, spa and wellness bathroom accessories, lawn and garden ornaments and fashion jewelry.

The show is being organized by the Export Promotion Council for Handicrafts (EPCH).

The second COVID-19 wave is breaking the back of the Indian yarn industry. The exodus of migrant workers and curfews are impacting the operating rate time of many yarn mills in the country. As CCF Group reports states, some mills are currently operating at 70 per cent of their capacities.

Mills’ operating rates drop

Spinners in Maharashtra are fast losing workers who fled the city as soon as the second wave broke out. The operating rate of yarn mills in New Delhi has declined. Similarly, the comprehensive operating rate of yarn mills in Andhra Pradesh has declined to 80 per cent due to curfew and lockdown. Ring-spun and open-end yarn mills in the state are currently operating at 70 per cent operating rate and have been unable to operate for 24 hours a day. Their inventory levels have increased to 45 days due to a sharp decline in sales.

Ring-spun mills in Gujarat are also reporting loss of workers and many migrant workers have left the state. Punjab is the only state which is still seeing a 100 per cent operating rate as it has provided accommodation facilities to its migrant workers.

Weakening local demand to impact overseas market

Recurrent lockdowns are expected to affect operating rates and output of Indian yarn mills further. They are also likely to impact yarn supply, preventing prices from declining. Though the demand from overseas market has not been greatly affected, the epidemic has weakened local downstream demand, which in the last two months, has played a key role in supporting yarn prices.

Experts fear, declining demand in local market may make India more dependent on the Chinese market, weakening its bargaining power. To prevent this, India needs to control the spread of epidemic and boost operations of combed yarn mills that have not yet fulfilled previous contracts. The future of yarn prices will mainly depend on which of the two parameters -- supply or demand weakens more severely.